New South Wales Bills Explanatory Notes New South Wales Bills Explanatory Notes[Index] [Search] [Download] [Bill] [Help]
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
Overview of Bill
The objects of this Bill are to amend the Transport Administration Act 1988, the
Passenger Transport Act 1990 and the State Owned Corporations Act 1989 as
follows:
(a) to change Rail Corporation New South Wales (RailCorp) and Sydney Ferries
from State owned corporations to statutory corporations having management
structures and accountabilities similar to the State Transit Authority,
(b) to require RailCorp to enter into rail services contracts with the
Director-General of the Ministry of Transport (the Director-General) as to the
rail services (including rail passenger services) provided by it,
(c) to provide for new service contract provisions for regular ferry services
(including ferry services operated by Sydney Ferries), while retaining the
service contract provisions for existing regular ferry services,
(d) to make other minor consequential amendments, including provisions of a
savings and transitional nature.The Bill also makes a consequential amendment to the Independent Pricing and
Regulatory Tribunal Act 1992.
Explanatory note page 2
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.Clause 3 is a formal provision that gives effect to the amendments to the Acts set out
in Schedules 1–4.Clause 4 provides for the repeal of the proposed Act after all the amendments made
by the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.Schedule 1 Amendments relating to constitution of
RailCorp
Schedule 1.1 Transport Administration Act 1988 No 109
Schedule 1.1 [1] amends section 3 of the Transport Administration Act 1988 (the
Transport Administration Act) to extend provisions contained in that Act that relate
to transport authorities that are not State owned corporations to RailCorp.Schedule 1.1 [3] amends section 4 of the Transport Administration Act to remove
the provision that inserted RailCorp into the State Owned Corporations Act 1989 (the
SOC Act) and to insert instead a provision declaring RailCorp to be a NSW
Government Agency. This has the effect of making RailCorp a statutory body
representing the Crown. Schedule 1.1 [2], [4] and [7] make consequential
amendments.Schedule 1.1 [5] amends section 10 of the Transport Administration Act to confer on
RailCorp functions relating to land acquisition, engines and other plant and
equipment, the making of contracts and arrangements for works and services and
other matters and the appointment of agents. These functions reflect the functions
conferred on the State Transit Authority and include functions that were formerly
conferred on RailCorp under the SOC Act
Schedule 1.1 [6] inserts proposed section 11A into the Transport Administration Act
to make RailCorp’s power to sell, lease or otherwise dispose of land subject to
Ministerial approval in certain circumstances, including any lease for a term
exceeding 5 years. This reflects the restrictions currently imposed on the State
Transit Authority.Schedule 1.1 [8] substitutes Division 4, and repeals Division 5, of Part 2 of the
Transport Administration Act to substitute the existing management structure that is
suitable for a State owned corporation with a new management structure that is
suitable for a statutory corporation that is not such a corporation. The proposed
Division:
Explanatory note page 3
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
(a) constitutes a new RailCorp Board, consisting of the Chief Executive Officer
and 4–7 members (proposed section 13) and confers on the Board the function
of determining the policies of RailCorp (proposed section 14), and
(b) provides for the Governor to appoint a Chief Executive Officer of RailCorp
who is to manage and control the affairs of RailCorp in accordance with the
Board’s policies (proposed sections 15 and 16), and
(c) enables the Minister to give written directions to the Board and requires the
Board and the Chief Executive Officer to ensure that RailCorp complies with
the directions, subject to a right to seek a review of directions (other than
directions involving urgency or public safety) that may affect RailCorp
financially or commercially (proposed section 17), and
(d) requires RailCorp to supply information to the Minister and to prepare
corporate plans (which are to be submitted to the Minister for comment before
being adopted) (proposed sections 17A and 17B), and
(e) enables RailCorp to exercise its functions through joint ventures and
subsidiary corporations and to establish public subsidiary corporations and
private subsidiary corporations, which were powers it could previously
exercise as a State owned corporation (proposed sections 17C–17E), and
(f) enables RailCorp to delegate functions (proposed section 17F).Schedule 1.1 [9] amends section 29 of the Transport Administration Act to remove
the State Transit Authority’s right to seek a review of Ministerial directions that may
involve a significant financial loss to the Authority where the direction involves
urgency or public safety and the Treasurer has been consulted. The amendment
makes the provisions that will apply to RailCorp, the Authority and Sydney Ferries
consistent.Schedule 1.1 [10] amends section 56 of the Transport Administration Act to exclude
RailCorp from provisions applicable to other transport authorities whose staff are
employed in the Government Service.Schedule 1.1 [11] inserts proposed Division 1A (proposed sections 58A–58C) into
Part 7 of the Transport Administration Act. The proposed Division enables RailCorp
to fix the salary, wages and conditions of its staff, retains existing appeal rights under
the Transport Appeal Boards Act 1980 and excludes RailCorp staff from the
Government Service.Schedule 1.1 [12] inserts proposed Division 1 (proposed sections 69–71) into Part 8
of the Transport Administration Act. The proposed Division establishes the RailCorp
Fund and provides for the payments that are to be made into and from the Fund.Schedule 1.1 [13] amends section 86 of the Transport Administration Act to enable
the Minister to direct that RailCorp, or any other Authority within the meaning of that
Act, is bound by a pricing policy approved by the Minister.
Explanatory note page 4
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
Schedule 1.1 [14] amends section 88 of the Transport Administration Act to enable
the Minister to direct that RailCorp, or any other Authority within the meaning of that
Act, may issue free or concession travel passes even though such travel is not fully
subsidised by the Government.Schedule 1.1 [15] amends section 107 of the Transport Administration Act to apply
all of the miscellaneous provisions in Division 4 of Part 9 of that Act to RailCorp
(currently the Division only partly applies). The effect of this is to apply additional
provisions relating to seals, contracts and a provision that validates actions done by
a transport authority in contravention of a Ministerial direction. Schedule 1.1 [16]
makes a consequential amendment.Schedule 1.1 [17] and [18] amend section 112 of the Transport Administration Act
to extend to the Chief Executive Officer of RailCorp and members of the RailCorp
Board protection from personal liability for matters done in good faith by them for
the purposes of that Act or any other Act.Schedule 1.1 [21] amends Schedule 1 to the Transport Administration Act to apply
the provisions of that Schedule (which sets out provisions relating to the constitution
and procedure of the State Transit Authority Board) to the RailCorp Board. Schedule
1.1 [19], [20] and [22] make consequential amendments.Schedule 1.1 [23] amends Schedule 1 to the Transport Administration Act to update
a reference to a repealed law.Schedule 1.1 [24] amends Schedule 2 to the Transport Administration Act to make
an amendment consequential on the amendment made by Schedule 1.1 [8].Schedule 1.1 [25] amends Schedule 2 to the Transport Administration Act to apply
the provisions of that Schedule (which sets out provisions relating to the Chief
Executives of the State Transit Authority and the Roads and Traffic Authority) to the
Chief Executive Officer of RailCorp.Schedule 1.1 [26] amends Schedule 2 to the Transport Administration Act to update
references to a repealed law.Schedule 1.1 [30] amends Schedule 6 to the Transport Administration Act to enable
the Minister for Transport to transfer, by order, members of staff of RailCorp or the
Independent Transport Safety and Reliability Regulator to the Ministry of Transport.Schedule 1.1 [27]–[29] and [31] make consequential amendments.
Schedule 1.1 [32] enables staff transferred to the Ministry of Transport to retain
existing terms and conditions of employment (subject to regulations) and to count
previous service with RailCorp or the Independent Transport Safety and Reliability
Regulator as service with the Ministry of Transport.Schedule 1.1 [33] amends Schedule 6 to the Transport Administration Act to provide
that staff transferred to the Ministry of Transport are not entitled to any payment or
benefit because of the transfer.Schedule 1.1 [34] amends Schedule 7 to the Transport Administration Act to enable
regulations containing provisions of a savings or transitional nature to be made
consequent on the enactment of the proposed Act.
Explanatory note page 5
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
Schedule 1.1 [35] inserts an interpretation provision.Schedule 1.1 [36] amends Schedule 7 to the Transport Administration Act to make
the following savings and transitional provisions:
(a) to provide that RailCorp as constituted after the amendments made by the
proposed Act is for all purposes (including the rules of private international
law) a continuation of, and the same legal entity as it was, before those
amendments,
(b) to continue the appointment of the existing chief executive officer of
RailCorp,
(c) to provide for the preparation by RailCorp of its first corporate plan under that
Act and to provide for the continuation of its existing statement of corporate
intent under the SOC Act as an interim measure.Schedule 1.2 State Owned Corporations Act 1989 No 134
Schedule 1.2 amends Schedule 5 to the SOC Act to remove RailCorp from the list
of State owned corporations under that Act.Schedule 2 Amendments relating to rail passenger
services
Schedule 2.1 Passenger Transport Act 1990 No 39
Schedule 2.1 [1] amends section 3 of the Passenger Transport Act 1990 (the
Passenger Transport Act) to insert definitions of rail passenger service and rail
services contract.Schedule 2.1 [2] amends section 4 of the Passenger Transport Act to include the
provision of rail services contracts in the objects of that Act.Schedule 2.1 [3] makes an amendment consequential on the amendment made by
Schedule 2.1 [4].Schedule 2.1 [4] inserts Division 4 (proposed sections 28K and 28L) of Part 3 into
the Passenger Transport Act. The proposed Division:
(a) provides that rail services (rail passenger services, bus services (other than
regular passenger services), rail infrastructure owner functions, the provision
of access and network control services) provided by RailCorp are to be subject
to terms and conditions in a contract between RailCorp and the
Director-General. The contract term is to be for not more than 8 years and may
be renewed from time to time (proposed section 28K), and
(b) requires the rail services contract to set out performance standards (proposed
section 28L).
Explanatory note page 6
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
Schedule 2.1 [5] amends section 48 of the Passenger Transport Act to exclude
RailCorp from being able to seek a review of a decision by the Director-General
concerning a rail services contract (this is consistent with the situation applying in
relation to regular bus services contracts).Schedule 2.1 [6] amends section 53 of the Passenger Transport Act to enable the
Director-General to enter into an information sharing agreement with the WorkCover
Authority about rail passenger services.Schedule 2.1 [7] amends Schedule 3 to the Passenger Transport Act to enable
regulations containing savings and transitional provisions to be made consequent on
the enactment of the proposed Act.Schedule 2.1 [8] amends Schedule 3 to the Passenger Transport Act to insert an
interpretation provision.Schedule 2.1 [9] amends Schedule 3 to the Passenger Transport Act to provide that
RailCorp is not required to comply with the requirements relating to rail services
contracts until it enters into such a contract and provides that the provision ceases to
have effect after 2 years or such later day as may be prescribed by the regulations.Schedule 2.2 Transport Administration Act 1988 No 109
Schedule 2.2 [1] amends section 38 of the Transport Administration Act as a
consequence of the amendment made by Schedule 2.1 [4].Schedule 2.2 [2] amends section 40 of the Transport Administration Act to enable
the Director-General to delegate his or her functions under the Passenger Transport
Act.Schedule 3 Amendments relating to constitution of
Sydney Ferries
Schedule 3.1 Transport Administration Act 1988 No 109
Schedule 3.1 [1] amends section 3 of the Transport Administration Act to extend
provisions contained in that Act that relate to transport authorities that are not State
owned corporations to Sydney Ferries.Schedule 3.1 [3] amends section 35A of the Transport Administration Act to remove
the provision that inserted Sydney Ferries into the SOC Act and to insert instead a
provision declaring Sydney Ferries to be a NSW Government Agency. This has the
effect of making Sydney Ferries a statutory body representing the Crown. Schedule
3.1 [2], [4], [7], [12] and [13] make consequential amendments.Schedule 3.1 [5] amends section 35E of the Transport Administration Act to confer
on Sydney Ferries functions relating to land acquisition, engines and other plant and
equipment, the making of contracts and arrangements for works and services and
other matters and the appointment of agents. These functions reflect the functions
conferred on the State Transit Authority and include functions that were formerly
conferred on Sydney Ferries under the SOC Act.
Explanatory note page 7
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
Schedule 3.1 [6] inserts proposed section 35EA into the Transport Administration
Act to make Sydney Ferries’ power to sell, lease or otherwise dispose of land subject
to Ministerial approval in certain circumstances, including any lease for a term
exceeding 5 years. This reflects the restrictions currently imposed on the State
Transit Authority.Schedule 3.1 [8] substitutes Division 4, and repeals Division 5, of Part 3A of the
Transport Administration Act to substitute the existing management structure that is
suitable for a State owned corporation with a new management structure that is
suitable for a statutory corporation that is not such a corporation. The proposed
Division:
(a) constitutes a new Sydney Ferries Board, consisting of the Chief Executive
Officer and 4–7 members (proposed section 35H) and confers on the Board the
function of determining the policies of Sydney Ferries (proposed section 35I),
and
(b) provides for the Governor to appoint a Chief Executive Officer of Sydney
Ferries who is to manage and control the affairs of Sydney Ferries in
accordance with the Board’s policies (proposed sections 35J and 35K), and
(c) enables the Minister to give written directions to the Board and requires the
Board and the Chief Executive Officer to ensure that Sydney Ferries complies
with the directions, subject to a right to seek a review of directions (other than
directions involving urgency or public safety) that may affect Sydney Ferries
financially or commercially (proposed section 35L), and
(d) requires Sydney Ferries to supply information to the Minister and to prepare
corporate plans (which are to be submitted to the Minister for comment before
being adopted) (proposed sections 35M and 35N), and
(e) enables Sydney Ferries to exercise its functions through joint ventures and
subsidiary corporations and to establish public subsidiary corporations and
private subsidiary corporations, which were powers it could previously
exercise as a State owned corporation (proposed sections 35O–35Q), and
(f) enables Sydney Ferries to delegate functions (proposed section 35QA).Schedule 3.1 [9] amends section 56 of the Transport Administration Act to exclude
Sydney Ferries from provisions applicable to transport authorities whose staff are
employed in the Government Service.Schedule 3.1 [10] inserts proposed Division 3 (proposed sections 62–64) into Part 7
of the Transport Administration Act. The proposed Division enables Sydney Ferries
to fix the salary, wages and conditions of its staff, retains existing appeal rights under
the Transport Appeal Boards Act 1980 and excludes Sydney Ferries staff from the
Government Service.Schedule 3.1 [11] inserts proposed Division 3A (proposed sections 80D–80F) into
Part 8 of the Transport Administration Act. The proposed Division establishes the
Sydney Ferries Fund and provides for the payments that are to be made into and from
the Fund.
Explanatory note page 8
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
Schedule 3.1 [14] amends section 107 of the Transport Administration Act to apply
all of the miscellaneous provisions in Division 4 of Part 9 of that Act to Sydney
Ferries (currently the Division only partly applies). The effect of this is to apply
additional provisions relating to seals, contracts and a provision that validates actions
done by a transport authority in contravention of a Ministerial direction. Schedule
3.1 [15] makes a consequential amendment.Schedule 3.1 [16] and [17] amend section 112 of the Transport Administration Act
to extend to the Chief Executive Officer of Sydney Ferries and members of the
Sydney Ferries Board protection from personal liability for matters done in good
faith by them for the purposes of that Act or any other Act.Schedule 3.1 [19] amends Schedule 1 to the Transport Administration Act to apply
the provisions of that Schedule (which sets out provisions relating to the constitution
and procedure of the State Transit Authority Board) to the Sydney Ferries Board.Schedule 3.1 [18] and [20] make consequential amendments.
Schedule 3.1 [21] amends Schedule 2 to the Transport Administration Act to make
an amendment consequential on the amendment made by Schedule 2.1 [8].Schedule 3.1 [22] amends Schedule 2 to the Transport Administration Act to apply
the provisions of that Schedule (which sets out provisions relating to the Chief
Executives of the State Transit Authority and the Roads and Traffic Authority) to the
Chief Executive Officer of Sydney Ferries.Schedule 3.1 [23] amends Schedule 7 to the Transport Administration Act to make
the following savings and transitional provisions:
(a) to provide that Sydney Ferries as constituted after the amendments made by
the proposed Act is for all purposes (including the rules of private international
law) a continuation of, and the same legal entity as it was, before those
amendments,
(b) to continue the appointment of the chief executive officer of Sydney Ferries,
(c) to provide for the preparation by Sydney Ferries of its first corporate plan
under that Act and to provide for the continuation of its existing statement of
corporate intent under the SOC Act as an interim measure.Schedule 3.2 State Owned Corporations Act 1989 No 134
Schedule 3.2 amends Schedule 5 to the SOC Act to remove Sydney Ferries from the
list of State owned corporations under that Act.Schedule 4 Amendments relating to ferry passenger
services
Schedule 4.1 Passenger Transport Act 1990 No 39
Schedule 4.1 [1] amends section 3 of the Passenger Transport Act to insert a
definition of ferry service contract.
Explanatory note page 9
Transport Administration Amendment (Rail and Ferry Transport Authorities) Bill 2008
Explanatory note
Schedule 4.1 [2] inserts proposed Division 1A (proposed sections 16AA–16AE) of
Part 3 of the Passenger Transport Act. The proposed Division replaces the existing
service contract regime for regular ferry services. The proposed Division:
(a) provides additional provisions for contracts relating to regular passenger
services provided by ferry (ferry service contracts), including that the contract
term is to be for not more than 8 years and may be renewed from time to time
(proposed sections 16AB and 16AC), and
(b) extends the provision precluding contracts that create competing services to
preclude such contracts under proposed Division 1A, if they affect existing
contracts (proposed section 16AB), and
(c) requires a ferry service contract to set out performance standards (proposed
section 16AD), and
(d) enables the contract to provide (as an essential term) that ferry fares are not to
exceed the maximum fare determined from time to time by the Independent
Pricing and Regulatory Tribunal and provides for such determinations.(proposed section 16AE). If such a provision is included in the contract, the
provisions enabling Sydney Ferries to make orders about fares under the
Transport Administration Act do not apply.Schedule 4.1 [3] makes an amendment consequential on the amendment made by
Schedule 4.1 [2].Schedule 4.1 [4] substitutes section 16A of the Passenger Transport Act to prohibit
new contracts from being entered into under the current service contract provisions
relating to ferries. Contracts may be renewed under those provisions.Schedule 4.1 [5] amends section 48 of the Passenger Transport Act to exclude ferry
operators from being able to seek a review of a decision by the Director-General
concerning a ferry service contract (this is consistent with the situation applying in
relation to regular bus service contracts).Schedule 4.1 [6] amends Schedule 3 to the Passenger Transport Act to provide that
Sydney Ferries is not required to comply with the new requirements relating to ferry
service contracts until it enters into such a contract and provides that the provision
ceases to have effect after 2 years or such later day as may be prescribed by the
regulations.Schedule 4.2 Independent Pricing and Regulatory Tribunal Act 1992
No 39
Schedule 4.2 makes an amendment to Schedule 1 to the Independent Pricing and
Regulatory Tribunal Act 1992 consequent on the amendment made by Schedule
4.1 [2].
Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.